Compounded Levy Scheme refunds follow special scheme rules, not Section 11B limitation, where Rule 96ZB governs repayment.

Excess payment deposited under the Compounded Levy Scheme was treated as a scheme-specific deposit, so the general refund limitation under Section 11B did not apply. The Tribunal followed the view that the Compounded Levy Scheme operates as an independent code and that, where the special scheme itself provides for refund without any time limit, general refund restrictions cannot be imported. On that basis, refund was governed by Rule 96ZB, and the Revenue's challenge could not be sustained.

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Issues: Whether excess amount deposited over duty liability under the Compounded Levy Scheme was refundable without applying the limitation under Section 11B, and whether such refund was governed by Rule 96ZB.

Analysis: The Commissioner (Appeals) treated the excess payment as a deposit arising under the Compounded Levy Scheme and held that the general refund limitation in Section 11B did not govern it. The Tribunal noted that in an identical factual situation the matter had earlier been remanded, and in the remand proceedings the assessee's stand was accepted by following the Larger Bench view that the Compounded Levy Scheme is an independent scheme and general provisions of law do not apply where the special scheme itself provides for refund without any time limit.

Conclusion: The refund was governed by Rule 96ZB and not by Section 11B, and the Revenue's appeal was not sustainable.

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